UPDATE: Credit Suisse Initiates Outperform, $12.50 on Roundy's Supermarket
Credit Suisse initiates its coverage on Roundy's Supermarket (NYSE: RNDY) with an Outperform rating and a price target of $12.50 to reflect the company's attractive risk/reward.
Credit Suisse says, "With a valuation near industry trough at 5x EBITDA and an 8.5% dividend yield, we believe the market has not properly valued its steady income stream and assigned value to Chicago. Investors should at least clip a steady coupon on the dividend and could see solid appreciation once the company's story becomes better understood."
RNDY closed at $10.98 a share on Friday.
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